Uttarakhand orders UPCL to meet RPO* shortfall within 2 months

Uttarakhand Electricity Regulatory Commission (UERC), in an order dated 11th September 2013 has ordered Uttarakhand Power Corporation Limited (UPCL) to meet its non-solar RPO shortfall of FY12 no later than 15th Nov 2013 through the purchase of RECs (i.e. within 2 months). This seems to be a super-strict order but in a positive direction.

UPCL in a letter dated 10.07.2012, had requested the commission to carry forward the shortfall of FY12 and had revised the estimates to 0.06% (Solar) and 4.10% (Non-Solar). In the subsequent order on 19.12.2012, the commission had mentioned that “financial condition of the company cannot be the ground for not meeting the obligations cast upon it under the Act & Regulations”. The commission had also said that any financial burden would be allowed to pass through the ARR, despite this it was observed that UPCL still did not comply with the stipulated regulations.

The total quantum as shortfall of FY12 is about 59.12 MUs, (as per data furnished by UREDA) which is going to generate a demand of 59000 non solar RECs in the next two months, which as per commissions is going to cost around Rs. 8.87 crore. Also, the shortfall in RPO for FY13 has to be mandatorily met by end of current fiscal cumulatively with RPO target of FY14. On the Solar RPO front, the commission has allowed to carry forward the solar RPO shortfall of FY12 and FY13 to FY14, acknowledging the fact UPCL has taken adequate steps to meet solar RPO.

In the same order, UERC has also observed that UPCL’s submissions regarding RPO data are not in sync with that furnished by UREDA.